Dynatrace (NYSE:DT) Updates FY 2027 Earnings Guidance

Dynatrace (NYSE:DT) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 1.970-1.990 for the period, compared to the consensus EPS estimate of 1.780. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion. Dynatrace also updated its Q2 2027 guidance to 0.480-0.490 EPS.

Dynatrace Stock Up 12.3%

Dynatrace stock traded up $5.63 during mid-day trading on Wednesday, hitting $51.34. 9,575,727 shares of the company’s stock traded hands, compared to its average volume of 6,276,150. Dynatrace has a one year low of $31.64 and a one year high of $53.29. The firm has a 50 day moving average price of $42.97 and a 200 day moving average price of $39.37. The company has a market cap of $14.90 billion, a PE ratio of 95.08, a price-to-earnings-growth ratio of 2.87 and a beta of 0.72.

Dynatrace (NYSE:DT) last announced its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.44 by $0.04. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The firm had revenue of $554.55 million during the quarter, compared to analyst estimates of $549.46 million. During the same quarter in the prior year, the firm posted $0.42 EPS. Dynatrace’s revenue was up 16.3% compared to the same quarter last year. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. On average, analysts expect that Dynatrace will post 1.11 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

DT has been the topic of several recent analyst reports. Truist Financial boosted their target price on Dynatrace from $45.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Barclays lifted their price target on Dynatrace from $44.00 to $48.00 and gave the company an “overweight” rating in a research report on Tuesday, July 21st. Jefferies Financial Group reissued a “hold” rating on shares of Dynatrace in a research note on Tuesday, July 21st. Royal Bank Of Canada restated an “outperform” rating and issued a $50.00 price objective on shares of Dynatrace in a report on Thursday, July 16th. Finally, Scotiabank lowered their target price on Dynatrace from $47.00 to $44.00 and set a “sector outperform” rating on the stock in a report on Thursday, May 14th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Dynatrace presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.38.

Key Stories Impacting Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported fiscal Q1 earnings of $0.48 per share, above the $0.44-$0.45 analyst consensus and up from $0.42 a year earlier. Revenue reached $554.55 million, exceeding estimates of approximately $549.5 million and increasing 16.3% year over year. Dynatrace Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Management highlighted 41% organic net new annual recurring revenue growth, suggesting stronger customer demand and momentum from enterprise cloud adoption and AI-related spending. Key operating metrics also reportedly topped expectations. Dynatrace Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Fiscal 2027 adjusted EPS guidance was raised or set at $1.97-$1.99, well above the roughly $1.78 consensus. Second-quarter EPS guidance of $0.48-$0.49 also exceeded the $0.44 estimate, supporting expectations for continued earnings growth.
• Neutral Sentiment: Full-year revenue guidance of approximately $2.3 billion was broadly in line with analyst expectations, limiting the upside from the earnings outlook. Dynatrace Earnings and Revenue Report
• Negative Sentiment: Second-quarter revenue guidance of $565 million-$570 million was slightly below the $570.1 million consensus, and reports noted a modest reduction to fiscal 2027 revenue expectations. This could temper the valuation benefit from the strong EPS outlook.
• Neutral Sentiment: Analyst sentiment remains generally constructive but valuation expectations vary: Rosenblatt reaffirmed a Buy rating with a $52 price target, while Cantor Fitzgerald raised its target to $47. Cantor Fitzgerald Raises Dynatrace Price Target

Institutional Investors Weigh In On Dynatrace

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. boosted its stake in Dynatrace by 21.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company’s stock worth $85,000 after purchasing an additional 272 shares in the last quarter. Quarry LP grew its holdings in Dynatrace by 251.1% during the 4th quarter. Quarry LP now owns 2,219 shares of the company’s stock worth $96,000 after acquiring an additional 1,587 shares during the last quarter. Jones Financial Companies Lllp increased its position in Dynatrace by 19.2% in the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company’s stock valued at $102,000 after acquiring an additional 348 shares in the last quarter. UMB Bank n.a. raised its stake in shares of Dynatrace by 12.7% in the fourth quarter. UMB Bank n.a. now owns 3,190 shares of the company’s stock worth $138,000 after acquiring an additional 360 shares during the last quarter. Finally, Arax Advisory Partners lifted its position in shares of Dynatrace by 306.6% during the fourth quarter. Arax Advisory Partners now owns 3,253 shares of the company’s stock worth $141,000 after purchasing an additional 2,453 shares in the last quarter. 94.28% of the stock is owned by institutional investors and hedge funds.

About Dynatrace

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company’s engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.